Industry Analyst Says Sony Doesn’t Love You, It Loves Your Money

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Sony decision to stop producing physical PlayStation game discs starting in 2028 has sparked significant backlash from players, but industry analysts believe the company has little reason to change course. According to market experts, the move is ultimately about increasing profits in a market that continues to shift toward digital purchases.

Among the most outspoken voices was Circana analyst Mat Piscatella, who argued that consumers should not expect corporations to reward years of brand loyalty when financial incentives point elsewhere:

“You can love your preferred video game ecosystem, franchise, or whatever all you want. You can think your years of customer loyalty should/will be reciprocated. But these businesses don’t love you back. Same with your job, fwiw. You’re a number on a spreadsheet.”

Piscatella also suggested that rising hardware costs could further influence Sony’s strategy. With some analysts forecasting that future systems such as the PlayStation 6 and Microsoft’s rumored Project Helix could cost $1,000 or more, platform holders are expected to focus on improving profit margins wherever possible. Eliminating physical media is one of the most effective ways to achieve that.

When Sony sells a $70 first-party game digitally through the PlayStation Store, the company keeps essentially the entire sale. By comparison, a physical retail copy requires revenue to be shared with retailers and manufacturing partners. Estimates suggest Sony receives roughly 65% of a first-party physical game sale, while retailers keep around 30% and manufacturing accounts for the remaining 5%.

The difference is also significant for third-party releases. Physical copies primarily generate licensing revenue for Sony, estimated at around 15% of each sale. Digital purchases, however, allow Sony to collect its standard 30% platform fee, or roughly $21 from every $70 third-party game sold through the PlayStation Store.

While Sony has officially confirmed its transition away from physical media, Microsoft has yet to announce a similar move for Xbox. Nevertheless, many industry observers believe the company could eventually follow the same path as digital game sales continue to outpace physical purchases across PlayStation, Xbox, Nintendo, and PC.